Chelsea up 2.81% at P10.98 at noon break


NEWLY-listed Chelsea Logistics Holdings Corp. on Tuesday finished the morning session up 2.81 percent or P0.30 to P10.98 per share on the Philippine Stock Exchange, from an initial public offering (IPO) of P10.68 per share.

BDO Capital and Investments Corp. President Ed Francisco said he sees Chelsea performing stronger in the long-term.

“This one I’m very optimistic because of the fact that the IPO was successful. That means they have the fund to acquire and to grow. I think they will also disclose their numbers in the next few days and I think it should be very good … So it will show that it will reward investors who’ve come in,” Francisco told The Manila Times.

“It’s very positive. It will be stronger and get bigger,” he added.

BDO Capital was hired as issue manager, lead underwriter, and sole bookrunner for the Chelsea IPO.

Chelsea opened up 3.37 percent at P11.04 and hit an intraday high of P11.20 per share—up 4.86 percent—at 9:50 am.

“In this perspective, Chelsea’s performance is just in line, I think, with the general trends of recent IPOs,” Philstocks senior research analyst Justino Calaycay Jr. said.

“Over the long-term, we will have to see how the logistics sector plays out,” he added.

The company registered over 546 million common shares with the Securities and Exchange Commission. The offer shares account for 30 percent of the 1.82 billion outstanding common shares of the company.

It raised P5.84 billion from the IPO. The company intended to spend its proceeds from the maiden share sale on fleet expansion; purchase and upgrade of ports, port facilities, containers, machinery, equipment; and acquisition of other shipping and logistics firms.

Chelsea is one of the logistics units of tycoon Dennis Uy. ANGELICA BALLESTEROS



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